When you read the word predictive – do you automatically think of a crystal ball that shows what the future holds? No? Ok, but it’s pretty much what it is, minus the crystal ball. With the help of data analytics, predictive marketing gives you indications of how specific customers will act in the future. See things like how long they will be an active customer, what their next purchase might be, and how much money in total they will spend on your brand.
Use cases for predictive marketing analytics
When you can predict your customers’ behavior, a new world opens up! Proactivity gets a whole new meaning since you will be able to take action before the customer even knows it. You will see if your customer is showing a healthy interest in you, starting to decline or if they have already moved away from you. Use these insights to create marketing activities for your customers.
- When you see that a customer’s interest is starting to decline, remind them why they bought from you in the first place! In other words – show them some extra love
- Optimize your spending – when you are able to see how much a customer is likely to spend on your brand, you can set up a plan for your spending. Put more time and effort into the customers that are likely to spend the most so you can optimize your ROI
Features of Voyado’s predictive marketing analytics
We know that machine learning and AI is the future. So besides everything we will describe now, we are constantly working on finding new, cool AI and predictions to add to our platform!
Churn is a scary word since it means the end of a relationship with a customer. But no retailer in the world is excluded from it! It takes some hard work to prevent and reduce churn, and you have probably wished for a simple way to predict who’s about to churn about a thousand times. But hey! That’s what our predictions can give you!
Our churn score looks at the customer’s overall engagement – measuring things like opening rates, click rates, purchase frequency etcetera. The score goes from 0.00 to 1.00, where 0.00-0.50 is an active, healthy customer with a low churn score. 0.51-0.75 is a declining customer and if a customer shows a score between 0.76-1.00, sorry bro, it’s a churning one.
Tip! Voyado also shows you the metric “purchased recently” which is a great measurement to include when you set strategies for customer retention. Combine the churn score with “purchased recently”, to detect changes in the customers’ behavior.
Read more: prevent customers from leaving
Customer lifetime value
This measurement in predictive marketing is often referred to as CLV, and it gives you the predicted revenue your brand can expect from a specific customer. This is a great way for you to see which customers are the most and least valuable for you.
Voyado calculates the numbers by estimating how much time a customer has left as an active member. The estimated income in revenue during this time is multiplied with a fixed margin and capital cost (for future years as an active customer). This is done to give you an estimate on the potential profit left within the remaining member lifetime.
Use this metric to show appreciation to the ones who are most profitable, and encourage them to move forward!
This is probably the best way to upsell. Ever. Voyado looks at your customer’s historical purchases and email behavior, then identifies how different products relate to each other. When our AI-engine learns your customer’s behavior, our product recommendations present the products that the customer is likely to buy. It will exclude items that have already been bought by the customer and you can customize the recommendations to promote certain products!
These product recommendations can be presented in emails to your customers, or on your website. If you put them in an email, it’s with a super easy module that is dragged into the email template.
Our developers and data scientist have been working in close collaboration with our customers to develop an easy-to-use, accurate, and self-learning recommender. The AI that is built can dig out the relevance between all the products that you have ever sold. And it can also receive some settings so that your business rules can be taken into account. The result is amazing!
– Etienne Thessman, Product Owner, Voyado
Watch the video about product recommendations
Benefits of Voyado’s platform for AI and predictive marketing
Predictive marketing analytics like churn score and CLV are metrics that many retailers and brands need external help from agencies to calculate. And since that’s pretty costly, it’s usually done once or twice a year. In Voyado, churn score and CLV are part of the platform! And you can see these numbers every single day. Not only is it more cost-effective – it allows you to follow your customers’ behaviors and be proactive.
Another benefit is that when you use predictive marketing insights to communicate with your customers, statistics say the conversion rate goes up by 20 percent! Relevant communication for the win!
More than just predictive marketing analytics
Voyado is an intuitive customer loyalty platform for retailers. And our feature for AI and predictions is just one of our six features! They all work together for you to reach the ultimate goal – customer loyalty. Because you know what that means: increased revenue!
Ready to predict the future?
Yes! Who would say no to predicting the future behaviors of their customers? Not you. So set up a demo to see what Voyado can do for you!